CFOs should make companies crisis-proof
Every second CFO now expects the economy to weaken. CFOs from the automotive industry are particularly pessimistic. Companies should review their early warning systems, question their priorities and prepare for a further economic slowdown. These are the key findings of the "Operations Efficiency Radar 2019" compiled by Roland Berger and the International Controller Association (ICV).
The "Operations Efficiency Radar 2019", which should not only be of interest to CFOs, shows a trend: In many companies, the budgets for 2019 have to be resubmitted. The reason: The impending downturn is often not yet "priced in" in the figures prepared in the fall.
The assessment is particularly negative in the automotive industry and in mechanical and plant engineering: Here, as many as 93 and 56 percent respectively expect a downturn in 2019. For 74 percent of the companies, the product portfolio will be the focus of activities in 2019. The main focus here will be on reducing costs and aligning products even more closely with customer needs.
Other important fields of action are production, controlling & finance, sales & marketing and purchasing. The topic of working capital management also made a leap forward in the number of mentions. The authors see this as a further indication of a worsening economic outlook.
Product portfolio is topic No. 1
In line with the more difficult economic environment, the area of Controlling & Finance is also showing a major increase in importance. 59 percent of those surveyed said they would focus on this area in the coming months. "In the 10th study, controlling is once again among the top efficiency levers," says Prof. Dr. Heimo Losbichler, Chairman International Association of Controllers (ICV). "Whenever conditions become more difficult, controlling is particularly in demand. That's understandable; controlling is a key element of successful business management in both upturns and downturns."
According to the respondents, however, the priorities differ depending on the industry: While the automotive industry focuses primarily on production and working capital management, the mechanical and plant engineering industry tends to focus more on the product portfolio, production and purchasing.
Digitization as an opportunity
This year's special topic of digitalization makes it clear that many respondents also see the ongoing disruption as an opportunity for strategic reorientation within their companies. One in two sees corporate functions threatened by pure automation. 70 percent of respondents therefore assume that functions will have to reposition themselves in terms of their added value for the company. The opportunities to reposition themselves are considered particularly high for the Finance & Controlling and Logistics functions. "Digitalization brings more opportunities than risks for controlling," Prof. Losbichler also predicts. "Controllers should seize them now so that their area remains an indispensable value generator in the digital future."
A summary of the "Operations Efficiency Radar 2019" can be downloaded free of charge from the ICV website at Download online: www.icv-controlling.com
